CFO overconfidence, environmental violations, and firm performance. The moderating role of constituency statutes

Andrikopoulos, Panagiotis, Khoo, Shee-Yee, Klusak, Patrycja, Uymaz, Yurtsev and Vu, Huong (2025) CFO overconfidence, environmental violations, and firm performance. The moderating role of constituency statutes. European Management Review. ISSN 1740-4754

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Abstract

This study examines the relationship between Chief Financial Officer (CFO) overconfidence and firm performance through the lens of environmental violations and constituency statutes. Drawing on stakeholder and upper echelons theories, we find that firms with overconfident CFOs are more likely to commit environmental violations, which negatively impact their long-term performance. Our empirical evidence suggests that this effect can be moderated by the introduction of constituency statutes and violation penalties. Notably, firms with overconfident CFOs may benefit more from stakeholder-oriented laws while also incurring higher penalties for environmental violations.

Item Type:	Article
Uncontrolled Keywords:	cfo overconfidence,constituency statutes,credit ratings,environmental violations,business and international management,strategy and management ,/dk/atira/pure/subjectarea/asjc/1400/1403
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Finance Group
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	LivePure Connector
Date Deposited:	09 Jun 2025 15:30
Last Modified:	16 Jun 2025 08:33
URI:	https://ueaeprints.uea.ac.uk/id/eprint/99415
DOI:	10.1111/emre.70016

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